General Insurance Article - UK motor insurance industry rebound in underwriting results


UK motor insurance industry makes biggest single-year rebound in underwriting results

- Motor insurance market’s combined ratio in 2011 was 106%
- Market size reached £14 billion as total premiums rose 10% between 2010 and 2011
- Rate of premium rises expected to slow over next 12 months

 UK motor insurers have seen greatly improved financial results in 2011 but need to do more to improve profitability, according to Deloitte, the business advisory firm.
 
 Figures presented at Deloitte’s 22nd Annual Motor Insurance Seminar show that, despite seeing the biggest single-year improvement in profitability, the industry is still collectively declaring an underwriting loss.
 
 Insurers in 2011 posted a net combined ratio of 106%, which means the combined cost of claims and expenses was £106 for every £100 of net earned premium. This is a significant improvement on 2010 when the net combined ratio was 120%. The market claim ratio was 79% and the market expense ratio was 27%*.
 
 James Rakow, insurance partner at Deloitte, said:
 
 “At an industry level, the underwriting losses were close to £600 million in 2011 despite improvements in profitability over the year. Investment returns will have helped to alleviate underwriting losses. With total premiums now reaching £14 billion a year, the motor insurance market is still attractive for insurers who are successful at attracting and retaining profitable customers or selling add-ons to basic motor cover.
 
 “The motor insurance market achieved a 10% increase in gross written premiums between 2010 and 2011. This was not enough to return the market to underwriting profitability and many consumers are expected to face further increases in 2012 as insurers seek to improve their results.
 
 “We expect improved results to be delivered by motor insurers in 2012 and we could see an underwriting profit for the industry. The last time this was seen was in 1994.”
  

Back to Index


Similar News to this Story

Sleighing the risks by giving Santa the insurance he needs
While you might be the most magical employer in the world, we know that even you aren’t immune to the risks of running a global delivery service! From
Diversity improving in insurance and long term savings
Key figures from the Association of British Insurers’ latest Diversity, Equity and Inclusion (DEI) data collection highlight the work of insurers and
Almost a third of homeowners have been victims of burglaries
Research commissioned by Co-op Insurance reveals that almost one in three (29%) homeowners have been the victims of theft from their home. The member-

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.